Principles of Accounting!!
Principles of Accounting
The primary objective of financial accounting is: - ANS-To provide financial statements
to help external users analyze and interpret an organization's activities.
Internal users of accounting information include - ANS-Production managers
Which of the following elements are found on the income statement? - ANS-Expenses
Net income - ANS-Is the excess of revenues over expenses
A parcel of land is: offered for sale at $150,000, assessed for tax purposes at $95,000,
recognized by its purchasers as being worth $145,000, and purchased for $140,000.
The land should be recorded in the purchaser's books at: - ANS-$140,000
Assets created by selling goods and services on credit are: - ANS-Accounts receivable
Liabilities created by buying goods and services on credit are: - ANS-Accounts payable
If equity is $290,000 and assets are $515,000, then liabilities equal how much? -
ANS-$225,000
Zana Company paid off $45,000 of its accounts payable in cash. What would be the
effects of this transaction on the accounting equation? - ANS-Assets, $45,000
decrease; liabilities, $45,000 decrease; equity, no effect.
Rent expense that is paid with cash appears on which of the following statements? -
ANS-Income statement
A company reported total equity of $121,000 on its December 31, 2019, balance sheet.
The following information is available for the year ended December 31, 2018:
2020 revenues 130,000
2020 expenses 87,000
Liabilities, at December 31, 2020 66,000
What are the total assets of the company at December 31, 2020? - ANS-$230,000
DEAL - ANS-Dividends, expenses, assets, losses (DEBITED)
GIRLS - ANS-Gains, incomes, revenues, liabilities, stockholder's equity (CREDITED)
Page 1 of 2
Principles of Accounting
The primary objective of financial accounting is: - ANS-To provide financial statements
to help external users analyze and interpret an organization's activities.
Internal users of accounting information include - ANS-Production managers
Which of the following elements are found on the income statement? - ANS-Expenses
Net income - ANS-Is the excess of revenues over expenses
A parcel of land is: offered for sale at $150,000, assessed for tax purposes at $95,000,
recognized by its purchasers as being worth $145,000, and purchased for $140,000.
The land should be recorded in the purchaser's books at: - ANS-$140,000
Assets created by selling goods and services on credit are: - ANS-Accounts receivable
Liabilities created by buying goods and services on credit are: - ANS-Accounts payable
If equity is $290,000 and assets are $515,000, then liabilities equal how much? -
ANS-$225,000
Zana Company paid off $45,000 of its accounts payable in cash. What would be the
effects of this transaction on the accounting equation? - ANS-Assets, $45,000
decrease; liabilities, $45,000 decrease; equity, no effect.
Rent expense that is paid with cash appears on which of the following statements? -
ANS-Income statement
A company reported total equity of $121,000 on its December 31, 2019, balance sheet.
The following information is available for the year ended December 31, 2018:
2020 revenues 130,000
2020 expenses 87,000
Liabilities, at December 31, 2020 66,000
What are the total assets of the company at December 31, 2020? - ANS-$230,000
DEAL - ANS-Dividends, expenses, assets, losses (DEBITED)
GIRLS - ANS-Gains, incomes, revenues, liabilities, stockholder's equity (CREDITED)
Page 1 of 2
